The U.S. government has told Chinese conglomerate HNA Group Co. it has to sell its majority stake in a Manhattan skyscraper whose tenants include a police precinct tasked with protecting Trump Tower, according to people familiar with the matter.

The Committee on Foreign Investment in the U.S., which reviews whether foreign investments in the U.S. represent national-security risks, informed the Chinese company a couple of months ago it had to divest itself of its holding in the building, according to these people. CFIUS, as...

RELATED VIDEO

CFIUS: The Obscure Panel That's Becoming a Bigger Deal for Deals

A secretive panel called CFIUS is paving the way for President Trump to block more foreign business deals due to national security concerns. WSJ's Shelby Holliday explains why you'll hear more about CFIUS during the Trump era. Illustration: Laura Kammerman